- Medicare spending is growing rapidly due to factors like an aging population, rising healthcare costs, and the prescription drug benefit. If no action is taken, Medicare expenditures are projected to exceed total income by 2009. - Past attempts to reduce Medicare spending growth have mostly failed. The government will likely take action between 2009-2012 through measures like higher taxes, reducing payments to drug companies and providers, and potentially changing eligibility ages. - Which political party holds power will not significantly impact the need for action. The government has leverage over drug companies and will likely negotiate lower prices.